Tony Abbott severs Liberal Party's links with tobacco companies

Updated
August 22, 2013 14:08:00

The Federal Opposition has just ended a massive income stream for the Australian Liberal Party by ending its association with tobacco companies. Mr Abbott revealed his decision while announcing his health policy at Sydney' St Vincent Hospital. The Opposition Leader has promised health funding will not decrease if he's elected on September the 7th.

The Opposition Leader has promised health funding will not decrease if he's elected on September the 7th.

Our reporter, Samantha Hawley was there at the announcement and she joins me on the line now.

Sam, what has Mr Abbott had to say in relation to tobacco company donations?

SAMANTHA HAWLEY: Well, Scott of course this morning Mr Rudd had pledged to stamp out any influence from tobacco companies in politics and Mr Abbott was asked about that while he was here at St Vincent's Hospital in Sydney, though it came as somewhat of a surprise because of course there's been some pressure on Mr Abbott to make this move for quite a considerable amount of time.

But after that growing pressure, Mr Abbott has now revealed his decision to end a long tradition of the Liberal Party gaining significant donations from tobacco companies and asked why now, he said that he doesn't want this issue to become a distraction during this campaign.

He says with Kevin Rudd there's a distraction every day and he doesn't want this one to become an issue, so that's why he's made this decision and why he's made it now.

He also points out that he would pay back the money he's received from tobacco companies or the Liberal Party has received from tobacco companies if Kevin Rudd was willing to repay the funds that he's received from the Health Services Union. He says that would be a pretty fair deal in his view and he's also put pressure on Mr Rudd today to pay back the cost of the flight to a conference in Germany that the Prime Minister attended that he says were paid for by a tobacco company.

SCOTT BEVAN: And Sam, more broadly, what do we know about the health policy that the Coalition will be taking to the poll?

SAMANTHA HAWLEY: Well, I think the biggest thing here Scott is that Tony Abbott has guaranteed that he won't reduce health funding. Of course that's been what Kevin Rudd has been claiming he will do so that is significant in a sense.

There'll be no increase but there won't be a decrease, but Mr Abbott has also outlined that there will a re-jig in funding, that is that there will be fewer bureaucrats and more frontline workers. So he's promised no fewer nurses, no fewer doctors, no fewer front-line staff and of course that has been key - a key of Kevin Rudd's attack.

There's a little bit more funding, around $300 million, but most of that will be covered through savings, for things like bringing forward the biannual bowel cancer testing for older Australians. There's some more money for allied health scholarships and a pledge to simplify PBS (Pharmaceutical Benefits Scheme) rules.

On another big issue though, on the private health insurance rebate, Mr Abbott says he'll restore that as soon as possible but he wouldn't commit to a time frame for that and he certainly wouldn't commit to doing that in his first term of government if he wins on September the 7th.

And he did acknowledge that some Medicare locals could close and that's been another key attack from Mr Rudd, so he has acknowledged that some of those might go.